Reliance had approached the Central Electricity Regulatory Commission seeking transmission licenses for four lines in Maharashtra spread over 1,000 km. Subsequently, it added 16 new lines spread across the country and also proposed to set up 13 sub-stations.
CERC has not decided on the matter and has asked Power Grid to furnish its recommendations, sources in the regulatory agency said. Meanwhile, it has also decided to put in place licensing norms.
"The regulator will take a decision on the application after the norms are in place and will factor in Power Grid's comments," an official said.
A Power Grid executive said the transmission utility was the deemed licensee under the law and private players did not have the experience to handle transmission projects. The central utility was instead in favour of adopting the joint venture route and was willing to be a minority player.
Reliance was of opinion that the law permitted 100 per cent private-owned independent power transmission companies and Power Grid cannot independently decide who its partners would be.
Industry observers said Reliance was moving into the transmission business to take advantage of the anticipated heavy traffic in the coming years. On the other hand, Power Grid was trying to maintain its dominance in the transmission business.
Reliance is only the second company proposing to set up 100 per cent private-owned
The only joint venture approved by the electricity regulator so far was from Tala (Bhutan) where Power Grid joined hands with Tata Power, which holds 51 per cent stake in Powerlinks.
In case of the four lines for which Reliance had sought licenses earlier, Power Grid had invited bids seeking private participation for Parli-Aurangabad, Parli-Pune, Pune-Aurangabad and New Parli-Bhadrawati. The public sector proposes to be a minority shareholder in each case and is willing to offer 51 per cent to 74 per cent stake to private players.
High-voltage moves
Private push
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Reliance believes the law permits 100% private-owned independent power transmission companies
First mover
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Reliance has already approached the regulator for transmission licences for four lines in Maharashtra spread over 1,000 km
Runs into PSU wall
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Power Grid says it's the only deemed licensee in power transmission. Says Reliance can be its JV partner
Power games
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Observers say Reliance is moving into transmission anticipating heavy traffic, while Power Grid wants to retain its dominant position
